Tuesday, December 20, 2005
State 29, Drew & Conspiracy Theorist on the supply-side rainbow
A few days ago, State 29 flipped off a quick post using the term ‘supply-side’ to talk about the increase in U of I student b-ball ticket sales. State notes that when the U of I cut student ticket prices ticket sales went way up. In fact, the price cut produced such a significant increase in sales that this year’s cheap seat ticket sales eclipsed the total dollar value of student ticket sales in the previous year.
Drew, being that liberal sprite of a guy, takes a rhetorical two by four and beats State’s comments into bytes with a confusing post on supply-side theory, taxes and elasticity. Another guy, blogging on Iowa from LA, put together a fine post sifting Drew’s arguments and points out that taxation is not the primary variable in supply-side, rather, it is work effort in response to taxation that defines a supply-side curve.
So fine, everyone’s a little off. The term ‘supply-side’ in State’s example is used as jargon to describe one school of thought on marginalism -- the idea that economic decisions are subjective and marginal in nature. It seems Drew’s primary argument is that the term ‘supply-side’ is a tax concept and not applicable to b-ball ticket sales. Drew then gets a little fuzzy when discussing the elastic nature of taxation without mentioning productivity in response to taxation. But we have LA guy for that clarification.
Given the mish mash, I suggest we give State the benefit of the doubt on his loose interpretation of the term ‘supply-side’, we send Drew back to his econ prof for a little supply-side theory tutelage and that we encourage LA guy, Conspiracy Theorist, to keep posting his Iowa observations.
PS – If you’re doing that Christmas stuff late, check out the KC Planet live stream, they went from the Traveling Wilburys, to Beck, to Counting Crows to the Cure to Jack Johnson and back to some great old Tom Petty. (I think someone has a thing for Petty at the station.)